Banknotes and Coins

Cash circulation increased by 6.4 per cent in 2006. The total cash circulation was kr. 59.1 billion at year-end. 

In January 2007, Danmarks Nationalbank presented eight draft proposals for a new Danish banknote series. The artists Karin Birgitte Lund and Kaspar Bonnén have been asked to elaborate on their respective draft proposals, and in May 2007 Danmarks Nationalbank will decide which of the two proposals is most appropriate for a new Danish banknote series. The first banknote in the new series is expected to be issued in 2009, and the last banknote in 2013.

Two new coins were added to the tower series in 2006. Their respective motifs are the Bell Tower of Gråsten Palace and the Greenlandic cairns " Three Brothers" . In the fairy tale series, The Royal Mint issued " The Shadow" and " The Snow Queen" . Both the tower and the fairy tale series will be completed in 2007.

The tower series is followed by a new series of 20-krone coins with ships as their common motif. To mark the International Polar Year, Danmarks Nationalbank also issues a series of 10-krone coins with motifs from the Polar regions. The Polar coins are minted as 10-krone circulation coins, and also as collector's coins in gold and silver.

BANKNOTES AND COINS IN CIRCULATION

Even though debit card payments are becoming ever more prevalent, the use of cash continues to increase.^[1] The value of banknotes and coins in circulation rose from kr. 55.5 billion in 2005 to kr. 59.1 billion in 2006 – equivalent to an increase by 6.4 per cent.^[2] The increase in cash in circulation is attributable to such factors as economic growth, increasing private consumption and rising prices, cf. Chart 24.

The circulation of banknotes rose by 6.5 per cent during the year and totalled kr. 53.7 billion at end-2006. In value terms, the 1,000-krone banknote still accounted for the largest share, 55 per cent, cf. Chart 25. The number of banknotes in circulation rose to 156 million in 2006 from 150 million in 2005, cf. Chart 25. The increase in circulation was greatest for the 500-krone banknote, of which the number in circulation increased by 9.5 per cent.

The value of coins in circulation increased by 4.9 per cent in 2006 to a total of kr. 5.4 billion at year-end. As in 2005, the 20-krone coin showed the largest increase in circulation.

Pursuant to the Danmarks Nationalbank Act of 1936, the circulation of banknotes must be covered by Danmarks Nationalbank's holdings of gold and other assets. Since September 1939 an exemption from the gold coverage provision has been granted. The circulation is covered by other assets, e.g. bonds, foreign-exchange assets, etc.

COUNTERFEIT BANKNOTES

In an international context, counterfeiting of Danish banknotes is very limited. Most of the counterfeit banknotes are detected by retailers, who hand them in to the police. In 2006, 344 counterfeit banknotes were removed from circulation – a very small number considering that there are 156 million Danish banknotes in circulation, cf. Chart 26.

NEW DANISH BANKNOTE SERIES

Banknote security is always in focus at Danmarks Nationalbank. The security features of the present banknote series were upgraded in the period 2002-05. Subsequently, new and improved security features have been developed. In order to maintain a high level of security for Danish banknotes, in 2006 Danmarks Nationalbank initiated the process of designing a new, even more secure banknote series.

To propose themes for the new banknote series, a number of historians, architects, landscape architects, designers and artists, among others, were invited to take part in a discussion forum in the spring of 2006.

From among the many proposals the chosen theme was Danish bridges and surrounding landscapes, or details from these landscapes.

This theme reflects Denmark's position as a country surrounded by water and connected by bridges. The bridges selected are the Great Belt Bridge linking Zealand and Funen, the Old Little Belt Bridge linking Jutland and Funen, Queen Alexandrine's Bridge linking Zealand and Møn, the Sallingsund Bridge linking Jutland and Mors, and Knippelsbro in Copenhagen. The bridges chosen represent different types of bridge and different parts of Denmark. Several of the bridges are well-known, and some of them also represented innovation at the time of their construction.

The successful design of a banknote series requires the various denominations to be easily distinguishable from each other. The architectural diversity of the bridges ensures the necessary variation. A banknote design must also be harmonious, so that people are inspired to take a closer look at the banknote and its security features, which is the only way to tell a genuine from a counterfeit banknote. Last, but not least, the banknote must signal value, and not merely resemble printed matter.

The bridge theme gives ample scope for interpretation. To follow up the discussion forum in the spring, in the summer of 2006 Danmarks Nationalbank invited eight artists each to submit a draft proposal for the new banknote design. All eight proposals were exhibited in the lobby of Danmarks Nationalbank in January 2007.

On 30 January 2007, Danmarks Nationalbank announced that the artists Kaspar Bonnén and Karin Birgitte Lund have been asked to elaborate on their respective draft proposals for a new Danish banknote series. Both of the proposals have great potential. In the period until 1 May 2007, the two artists will work on their designs in more detail, after which Danmarks Nationalbank will evaluate which of the two design proposals is most appropriate for a new Danish banknote series.

Shortly afterwards, the artist chosen to design the new Danish banknote series will be announced.

The first banknote in the new series is expected to be issued in 2009, and the last banknote in 2013.

THE FAROE ISLANDS AND GREENLAND

As Denmark's central bank, Danmarks Nationalbank also supplies the Faroe Islands and Greenland with cash. Since 1951 the Faroe Islands have had special banknotes with Faroese motifs, but of the same dimensions and denominations as the Danish banknotes.

In 2006, a bill was introduced for separate Greenlandic banknotes. After the second reading in the Committee on Greenlandic Affairs of Denmark's Folketing (Parliament), the bill was submitted for renewed hearing by Greenland's Landsting (Parliament) in January 2007.

INCREASING ACTIVITY AT THE ROYAL MINT

The activities of The Royal Mint have increased in recent years. The introduction of the tower coins in 2002, and the fairy tale coins in silver and gold in 2005, as well as several different coin sets, has generated renewed interest in coins. The manufacture of official and private medals has also increased substantially.

The series of fairy tale coins was continued in 2006 with The Royal Mint's issue of two new coins in the series: " The Shadow" and " The Snow Queen" , with motifs designed by, respectively, the sculptor Bjørn Nørgaard and the sculptor Øivind Nygård, cf. Box 6. The fairy tale coins are issued as 10-krone circulation coins and as collector's coins in gold and silver. The series is inspired by five different Hans Christian Andersen fairy tales that have been interpreted by the artists so as to give each coin a distinctive motif. The last coin in this series will be issued in the autumn of 2007. At the same time a special coin set comprising all five fairy tale coins will be issued.

The tower coin series was also continued in 2006. The eighth tower coin, with the Bell Tower of Gråsten Palace as its motif, was issued in February 2006. The motif was designed by the sculptor and graphic artist Sys Hindsboe.

The Greenlandic sculptor Niels Motzfeldt designed the motif for the ninth tower coin, " Three Brothers" , issued in September 2006, cf. Box 7. This is the first Danish circulation coin with a motif from Greenland.

The tower coin series will be completed in the spring of 2007. The motif of the Copenhagen City Hall Tower on the final coin in the series is designed by the sculptor Lis Nogel, who also designed the motif of Aarhus City Hall Tower for the first tower coin in the series.

The Royal Mint will mark the completion of the tower series with the issue of a special coin set comprising all ten tower coins. All tower coins have a face value of 20 kroner and are issued only as circulation coins.

NEW THEMATIC COINS IN 2007

In 2007, a new series of 20-krone coins with ships as their common theme is introduced. The motif for the first coin in the series is the surveillance vessel " Vædderen" (the Ram), which from August 2006 to April 2007 is circumnavigating the Earth on the Galathea 3 Expedition.

New 10-krone coins are also introduced, as the fairy tale series is followed by a series of Polar coins, cf. Box 7. The Royal Mint has joined an international coin programme to mark the International Polar Year – a scientific project involving considerable research activities in Greenland. The series will comprise three coins, each issued in three editions: a 10-krone circulation coin and collector's editions in respectively silver and gold originating from Greenland.

COIN SET 2006

In February 2006, The Royal Mint for the first time issued a coin set for children. The children's coin set comprises the seven circulation coins and a silver medal designed by the illustrator Cato Thau-Jensen. The silver medal has space for engraving e.g. the child's name.

As in previous years, the 2006 coin set was issued in two versions: a very fine uncirculated version and a version in extraordinary proof quality. The 2006 coin set comprises the seven circulation coins and a medal in Nordic gold. The medal is an exact copy of a commemorative medal struck by King Christian V in 1691 to mark the inauguration of the Floating Dock in the Sound off Copenhagen.

THE ROYAL MINT HAS ITS OWN WEBSITE

In 2006, The Royal Mint launched its own website, www.royalmint.dk. The website describes the minting of coins and presents the Danish coin series, and all the thematic and collector's coins. It is also possible to order collector's coins from the website.

Online ordering via the website has made the collector's coins more accessible, and the number of orders increased significantly in 2006.